June 17, 2025 a 11:31 am
APA: Dividend Analysis - APA Corporation
APA Corporation, with a dividend history of 44 years, represents a stable income opportunity for investors. Despite a relatively low growth rate in recent years, the consistent dividend payments demonstrate strength in maintaining shareholder returns. Investors should consider the competitive dividend yield of approximately 4.88%, a testament to APA's commitment to its payout policy.
📊 Overview
APA operates in the Energy sector, maintaining a focus on sustainable dividend distributions. The company offers a dividend yield of 4.88% with a current dividend per share of 1.00 USD. Despite facing market challenges, APA has managed to sustain its dividend for 44 years, a reassuring signal for income-focused investors.
| Metric | Value |
|---|---|
| Sector | Energy |
| Dividend yield | 4.88% |
| Current dividend per share | 1.00 USD |
| Dividend history | 44 years |
| Last cut or suspension | None |
📈 Dividend History
The dividend history is a reflection of APA's dedication to shareholder value. The company has demonstrated a resilient payout schedule with minimal interruptions. This periodical distribution acts as a buffer against market volatility.
| Year | Dividend per Share (USD) |
|---|---|
| 2025 | 0.75 |
| 2024 | 1.00 |
| 2023 | 1.00 |
| 2022 | 0.625 |
| 2021 | 0.1375 |
📈 Dividend Growth
Dividend growth, although modest, remains a crucial aspect for evaluating future income potential. APA Corporation's dividend growth of 0.94% over the last 3 years reflects a stable increase. However, without growth over 5 years, this calls for a cautious perspective on long-term increments.
| Time | Growth |
|---|---|
| 3 years | 0.94% |
| 5 years | 0% |
The average dividend growth is 0% over 5 years. This shows moderate but stable dividend growth.
📉 Payout Ratio
The payout ratio is an essential indicator of the company's ability to maintain dividend payments. APA exhibits a healthy EPS-based payout ratio of 35.72% and a free cash flow-based ratio of 29.08%. These figures suggest that there is ample room to sustain dividends even in less profitable periods.
| Key figure ratio | Value |
|---|---|
| EPS-based | 35.72% |
| Free cash flow-based | 29.08% |
With an EPS payout of 35.72% and FCF payout of 29.08%, APA demonstrates effective dividend management.
Cashflow & Capital Efficiency
Analyzing cash flows and capital efficiency provides insight into APA’s operational excellence and investment capability. A strong free cash flow yield and balanced CAPEX indicate well-managed financial operations, ensuring shareholder returns are not compromised in downturns.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Free Cash Flow Yield | 9.43% | 6.99% | 16.42% |
| Earnings Yield | 9.86% | 25.83% | 23.71% |
| CAPEX / Operating Cash Flow | 78.76% | 75.33% | 48.51% |
| Stock-based Compensation to Revenue | 0% | 0% | 0% |
| Free Cash Flow / Operating Cash Flow Ratio | 21.24% | 24.67% | 51.49% |
The cash flow metrics indicate APA's robust ability to generate cash from its operations and invest efficiently in future growth.
Balance Sheet & Leverage Analysis
A thorough balance sheet analysis reveals APA's leverage and liquidity positions, highlighting financial stability. Despite a moderate leverage ratio, the company's quick ratio suggests sufficient liquidity to handle short-term liabilities.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Debt-to-Equity | 116.70% | 199.77% | 1328.61% |
| Debt-to-Assets | 31.78% | 34.79% | 42.75% |
| Debt-to-Capital | 53.85% | 66.64% | 93.00% |
| Net Debt/EBITDA | 1.31 | 1.10 | 0.71 |
| Current Ratio | 115.19% | 102.41% | 92.87% |
| Quick Ratio | 100.81% | 83.57% | 78.22% |
| Financial Leverage | 367.23% | 574.16% | 3108.04% |
APA demonstrates notable financial stability, with sufficient leverage control and liquidity poised well for market fluctuations.
Fundamental Strength & Profitability
Evaluating fundamental strength, APA showcases commendable profitability with strong returns on investment. The net margins and returns bolstered by efficient operation cost structures affirm the potential for sustained growth.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Return on Equity | 15.23% | 107.53% | 868.56% |
| Return on Assets | 4.15% | 18.73% | 27.95% |
| Net Margin | 8.26% | 34.48% | 33.17% |
| EBIT Margin | 19.60% | 38.82% | 54.68% |
| EBITDA Margin | 43.37% | 57.37% | 68.74% |
| Gross Margin | 44.18% | 51.06% | 56.48% |
| R&D to Revenue | 0% | 0% | 0% |
APA's profitability metrics are notably strong, underpinning a resilient and sound financial operation with significant returns on equity and assets.
Price Development
🔍 Dividend Scoring System
| Category | Score | Score Bar |
|---|---|---|
| Dividend yield | 4 | |
| Dividend Stability | 5 | |
| Dividend growth | 2 | |
| Payout ratio | 4 | |
| Financial stability | 3 | |
| Dividend continuity | 4 | |
| Cashflow Coverage | 4 | |
| Balance Sheet Quality | 3 |
Overall Score: 29 out of 40 points
🗣️ Rating
With its consistent dividend distribution, APA Corporation is categorized as a resilient dividend stock. While growth is limited, its sustainability and yield make it a strategic choice for income investors seeking reliable returns. APA's performance suggests a moderately favorable outlook for dividend-seeking investors.